MAF closes hybrid bond sale, tenders existing bonds: Majid Al Futtaim (MAF) wrapped up its USD 500 mn reset perpetual 5.25-year hybrid bond after drawing over USD 1.8 bn in orders excluding joint lead manager interest, Zawya reports. The non-call issuance closed more than 5.5x oversubscribed on strong investor demand, MAF told EnterpriseAM in an emailed statement.

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Pricing was tightened to 5.75% from initial guidance of around 6.375%. The notes, expected to be rated BB+ by S&P and Fitch, will list on Euronext Dublin.

Trimming the old to make room for the new: The Dubai-based retail giant, rated BBB (stable) by S&P and Fitch, is simultaneously tendering up to USD 190 mn of existing perpetuals ahead of upcoming call dates in December this year and end-June 2027.

Breaking down the jargon: The perpetual hybrid bond carries no maturity date, allowing MAF to partly classify it as equity, while investors earn a coupon that resets every 5.25 years. As subordinated debt, the notes rank below senior obligations, offering a higher yield in return for added risk. The non-call feature prevents early redemption before the first reset.

This is MAF’s second issuance in as many months, with the company issuing a 10-year USD 500 mn sukuk, as part of a USD 3 bn debt program. The issuance had also drawn nearly USD 1.8 bn in orders and landed a coupon rate of 4.875% and a yield of 4.955%, with proceeds earmarked for general corporate purposes and refinancing.

ADVISORS- Citi, Goldman Sachs International, HSBC, and Standard Chartered acted as joint global coordinators and bookrunners, joined by our friends at Mashreq alongside Abu Dhabi Commercial Bank, Emirates NBD Capital, First Abu Dhabi Bank, and JP Morgan as additional bookrunners.

ALSO FROM MAF-

FACT CHECK- The company “categorically refutes” reports of any potential stake sales, divestments, or changes in governance, calling them “entirely inaccurate, unfounded, and misleading,” it said in an emailed statement to EnterpriseAM. Bloomberg had reported earlier on Wednesday that Dubai officials were weighing strategic options for the USD 19 bn conglomerate, including a potential minority stake sale, partial divestments, or an IPO.

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